The Index can long above 26000 for the potential target of 26100 with stop loss of 25930 level - GEPL Capital Ltd
Market News:
* Ather Energy has approved the formation of a wholly owned subsidiary to enter insurance distribution, expanding its footprint beyond electric two-wheelers into allied mobility services.
* REC’s arm, REC Power Development, has incorporated Balsan Power Transmission as a wholly owned subsidiary.
* MUFG Bank will acquire a 20% stake in Shriram Finance through a preferential allotment worth Rs.39,620 crore, along with the right to nominate two directors to the company’s board.
Technical Summary:
The index opened on a gap-up note and remained largely range-bound throughout the session, while comfortably sustaining above its 20-DEMA and 50-DEMA, indicating underlying stability. During the session, the index also broke out of a sloping trendline that had been capping prices and had led to a lower-top formation, signaling a potential shift towards a more positive near-term structure. This breakout suggests that selling pressure at higher levels is easing and that the index may be attempting to regain upward momentum. However, the lack of strong follow-through buying kept the price action confined to a narrow range, reflecting cautious optimism rather than aggressive bullishness. On the sectoral front, Defense and Realty stock outperformed and emerged as the top gainers for the day, while Metal and Capital Market stocks witnessed profit booking, indicating sectoral rotation rather than broad-based weakness.
Levels to watch:
The Nifty has its crucial resistance 26100 (Multiple Touches) and 26220 (Key Resistance). While support on the downside is placed at 25850 (Multiple Touches) and 25700 (Key Support).
What should short term traders expect?
The Index can long above 26000 for the potential target of 26100 with stop loss of 25930 level.
Technical Data Points
NIFTY SPOT: 25966 (-0.31%)
TRADING ZONE:
Resistance: 26100 (Multiple Touches) and 26220 (Key Resistance)
Support: 25850 (Multiple Touches) and 25700 (Key Support).
STRATEGY: Bullish till above 25700 (Key Support).
BANK NIFTY SPOT: 59069 (-0.54%)
TRADING ZONE:
Resistance: 59300 (Multiple Touches) / 59600 (Key Resistance)
Support: 58700 (Pivot Level) / 58300 (Key Support)
STRATEGY: Bullish till above 58300 (Pivot Level)
SEBI Registration number is INH000000081.
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